How is economic development measured?
It is usually measured by GDP per capita of economies.
- It refers to the economic well-being of the people in a nation & the standard of living of the people within those economies.
What is Sub-Saharan Africa?
All the countries of Africa under the Sahara desert.
What is Sub-Saharan Africa’s economic structure and what’s its it flaws?
Very little diversification, fragile to economic shocks, and very little integration with international economy (trade protectionism; Capital controls).
- Agriculture and commercial fishing.
- Natural resources (oil, mines, metals)
Resources curse (Dutch disease, corruption, war, droughts, floods). - Textiles.
What is Dutch Disease (1) and what are its consequences (2) ?
- When good news, such as the discovery of large oil reserves, harms a country’s broader economy.
- It may lead to a rising currency value, which causes a drop in exports and a loss of jobs to other countries.
- It exploits natural resource.
How is Sub-Saharan Africa’s economic performance? (progress or decline?)
(GDP / PPP / GNI)
DECLINE
- Their GDP per capita is the lowest in the world.
- Their PPP is the lowest in the world.
- Their GNI per capita is the lowest in the world.
What are the cause of this decline?
(6).
(Low E, Low LF, Low, Bad I, Close E, No TD)
- Low to no education (60% of the pop. +15y/o).
- Low life expectancy.
- Low GDP per capital ( extreme poverty).
- Bad institutions (corruption).
- Close economy (push away FDIs).
- No technological development.
Is there any solutions which can help Sub-Saharan Africa’s economic development? (7).
(M.S.I.O.D.T.L.)
- Millennium development goals (8 MDGs).
- Sustainable Development Goals (17 SDGs).
- Increase international aid to undertake necessary reforms (only if there is good governance).
- Open the economic trade and monetary sectors.
- Democratization (accountability, transparency, better governance).
- Trade liberalization for agricultural products.
- Let the people in power die and hope that the new generation doesn’t repeat the same mistake.
What is the difference and similarity between MDGs & SDGs?
Both are sets of world issues created by the UN in which they most combat over x number of years.
Before is was only the 8 MDGs, but that transformed into the 17 SDGs including the original 8 problems which weren’t solve in the first place.
Why does Sub-Saharan Africa skeptical about FDIs and foreign trades?
(RTP & BH).
Due in part to their restrictive trade policies and bad historical experiences with foreigners.
Why do FDIs are skeptical about Sub-Saharan Africa? (6).
(High, Low, Weakened, G, TP, E).
- High risk economy.
- Low quantity and quality of infrastructures and weak institutions.
- The people are not educated enough and too poor to save.
- Weakened human capital (diseases & large % of the pop. is below 15y/o).
- Government is under unsustainable fiscal deficits.
- The trade protectionism.
What is the Human Development Index (HDI)?
Economic development as the elimination of poverty and unemployment as well as an increase in income.
What does the HDI measure? (3).
(LE.K.SoL.)
- Life expectancy.
- Knowledge (schooling).
- Standard of living measured by GDP per capita (PPP US$).
Who said: “If we can’t change destiny, let’s focus our efforts on policy”?
Collier & Gunning
